My parents have decided to sell their house and buy a new one and signed paperwork with a realtor but are in beginning talks with their neighbor about purchasing their house. My sister-in-law said if they decide to sell to their neighbor they could first sell the home to me so they could get around the realtor and giving her a commission and the fees associated with her. But we aren't sure exactly how that would work. We would still use the realtor to find and purchase a new home so weren't sure if my parents did sell the house to me to get around her that they would still help. Any help would be greatly appreciated
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In general, once you have signed a contract with a realtor, you own the realtor the commission, even if you find a buyer yourself. This holds through the term of the contract (which is typically three months or so).
Selling without a realtor is certainly legal and may be a good option if the seller and the buyer know what they are doing, but they would have to wait until the contract with the realtor expires, and should carefully examine the contract.
Your wordy garble baffles me. I can't make heads or tails of it but, if you have signed a contract with a realtor, you owe the realtor a commission, no matter who you sell to. Read the contract again, and again, until you understand it.
Try to cheat and they WILL get caught and sued.
Most listing contracts state if you sell the home to anyone without using the agent, you still have to pay the agent. Selling to you would be stupid since you would have to pay closing costs & have a down payment...
This is being penny smart but pound foolish. Sure, cut out the realtor...but what about the tax implications here?
They signed a contract with the realtor. They will owe her commission during the contract period for any sale, no matter who buys it. Transferring the home to you first would make you liable for income taxes on the sale as it would not be your principal residence. It's foolish to try to screw over the realtor especially if you want to use them to purchase as new home.
"signed paperwork" is a contract, there is no 'getting out of the contract' without paying the cost of doing so
Why do you think selling to you, you can avoid the Realtor? Unless you're specifically excluded in the listing agreement your parents are obligated to pay a commission. Now perhaps since he would get the buying and selling side of the commission the Realtor might reduce the commission.
Check their agreement with the realtor - they may owe them commission even if they make the sale directly.